This feature examines the outlook for the FOMC and the BOJ as expectations for rate hikes in the United States and Europe strengthen. Oil prices have risen into the $103 range, while reports have highlighted anxiety over Bessent’s remarks.
The Priority’s feature analyzes, with economist Suehiro Toru (末廣徹), developments since July surrounding rising expectations for rate hikes by the central banks of the United States and Japan and their prospective policy direction. It examines the extent to which a rate hike has been priced into the FOMC, the market response, and the impact on stock prices and foreign exchange rates.
For the BOJ, the possibility of raising the policy rate to the 1.25% level under “external pressure” is discussed, along with Governor Ueda’s remarks and the signaling of future interest-rate policy. With the BOJ’s policy meeting approaching, tensions in financial markets are rising.
Oil prices have risen to around $103, and the feature presents the view that developments in energy markets will affect the outlook for financial markets. Together with the US growth outlook and interest-rate trends, oil is discussed as a factor driving movements in long-term interest rates and foreign exchange rates.
An analysis is presented of reports that Bessent expressed anxiety with the remark, “I’m the house,” and of the possibility that it could affect sentiment in financial markets. On The Priority program, the views of Suehiro Toru (末廣徹) and the guest are presented in turn.